Question

In: Accounting

Leo, Amanda, and Nancy are partners with the following capital balances and profit-and-loss sharing ratios: Leo...

Leo, Amanda, and Nancy are partners with the following capital balances and profit-and-loss sharing
ratios:

Leo (30%) $500,000
Amanda (25%) 300,000
Nancy (45%) 650,000

Required:
Prepare the journal entries to admit Tim into the partnership and calculate the partners’ capital balances immediately after his admission under each of the following independent scenarios:
1-Amanda assigns half of her interest to Tim for $200,000. (1 point)

2-Tim invests $100,000 cash in the partnership for a 20% interest in the partnership capital and profits and the partnership assets are revalued. (5 points)

3-Tim invests $170,000 cash in the partnership for a 10% interest in the capital and profits of the partnership and the partnership assets are revalued. (4 points)

4-Tim invests $350,000 cash in the partnership for a 20% interest in the capital and profits of the partnership and the partnership assets are not revalued. (5 points)

Solutions

Expert Solution

Answer:

ekkarill92 answered 1 year ago
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